NEW YORK (TheStreet) -- Telik (TELK) soared Tuesday after Monday's announcement that the oncology drug development company had entered into a definitive merger agreement with privately held MabVax Therapeutics.

The two companies will combine into a publicly-traded company via an all-stock transaction. The new company will focus on "the development of proprietary immunotherapy-based products to diagnose and treat cancer," according to a press release.

The new company will be known as MabVax Therapeutics Holdings and the MabVax management team will lead it. J. David Hansen, President and CEO of MabVax, will serve as President, CEO, and Chairman of the Board of the new company. Michael M. Wick, M.D., Ph.D., who currently serves as President and CEO of Telik, will remain on the board.